Continental axes 3,000 staff and grounds 67 aircraft
Continental Airlines has become the latest US carrier to react to the impact of record fuel prices by slashing jobs and aircraft.
The airline is to lay-off 3,000 staff and cut 67 Boeing 737s from its US domestic fleet.
CEO Larry Kellner and president Jeff Smisek are to forgo their salaries and bonuses for the rest of the year.
In a joint statement to staff, they described the US airline industry as facing its “worst crisis since 9/11†due to record-high fuel prices – 75% more than a year ago.
“These record fuel prices have fundamentally shifted the economics of our business,†they said. “At these fuel prices, a large number of our flights are losing money, and Continental needs to react to this changed marketplace.â€
The actions being taken were “necessary to secure our future,†the statement said.
The carrier is to outline service cuts by the end of next week but plans to remove all 737-300s from its fleet by the end of 2009. This will bring the total fleet size down to 344 aircraft by the end of next year.
Domestic capacity is to be trimmed by 16% year-on-year by the end of this year.
Continental joins American Airlines and United in cost cutting regimes in the face of the fuel crisis and economic downturn.
by Phil Davies
Phil Davies
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